Use the following information to answer Question. The Furniture Division of Waverly Company reports the following results for 2012:

Use the following information to answer Question. The Furniture Division of Waverly Company reports the following results for 2012:

Revenues $400,000

Operating Exp $360,000

Operating Income $40,000

Operating assets $500,000

Waverly Company has set a target return on investment (ROI) of 12% for the Furniture Division. Assume that the division believes its revenues and operating expenses will continue to be $400,000 and $360,000, respectively. To what level would the Furniture Division have to reduce its operating assets to achieve the target ROI?

A.

$375,000.

B.

$433,333.

C.

$333,333.

D.

$176,000.